Reduction in costs would benefit Ford India

A company official says Ford Motors are planning to release 8 new cars from its 2 plants in India and the cars would be built on a platform for global sales that would have many common parts thus reducing costs.

President and MD, Michael Boneham, Ford India, told the new releases would not be designed for a particular market, but would have many common parts added to bring down costs. Michael Boneham told decisions were not made regarding the models to be released in the company’s 2 plants in India, one that’s existing and a new one in Gujarat. He says the decision to come up with their 2nd facility in Gujarat was to mainly save logistic costs. He told by having a unit close to NCR (National Capital Region), it would account for 20% of their sales.

Boneham told the engine plant would be rolling out first, and in 2014, a car plant. He told the new facility would be able to make 6 different models utilizing one production line.

Ford India’s planning to build a manufacturing unit for integration of vehicles and later an engine unit in Gujarat (Sanand) at the cost of 1 billion dollars.

The plant that would manufacture vehicles would have a yearly initial capacity to produce 2,40,000 units whereas the facility that would manufacture engines would initially have a capacity to produce 2,70,000 engines yearly.

The Maraimalai Nagar vehicle plant has a capacity to produce 2,00,000 units yearly.

An investment of 72 million dollars would be made by Ford for expansion of its engine facility to push yearly production capacity from 2,50,000 to 3,30,000 units.

Boneham told the company would cross production of 1,00,000 units in Chennai this year and told it was only 30,000 units 3 years ago.

Lastly, Boneham believes India would be the world’s 3rd biggest car market after US and China by 2020.